Notice & Comment

International Trade: President Obama Sets Out Substantial Changes in Export Control System, by Jonathan Rusch

On August 30, the White House issued a statement reporting that on August 31, President Obama would announce “a major step forward in the Administration’s efforts to fundamentally reform the export control system and will outline the foundation of our new export control system.” According to the statement, the Administration’s planned changes would address four areas:
(1) Export Control Lists. “[A]gencies will apply new criteria for determining what items need to be controlled and a common set of policies for determining when an export license is required,” and the existing two control lists will be split into three tiers based on the extent to which the items provide a military or intelligence advantage to the United States and the availability of those items.
(2) Licensing Policies. Once a controlled item is placed into one of the three tiers, “a corresponding licensing policy will be assigned to it to focus agency reviews on the most sensitive items.”
(3) Export Enforcement. The announcement states that plans to strengthen export enforcement will include the President’s signing of an Executive Order today “establishing an Export Enforcement Coordination Center that will coordinate and strengthen the U.S. Government’s enforcement efforts – and eliminate gaps and duplication – across all relevant departments and agencies.”
(4) Information Technology Systems. The statement noted that “the U.S. Government is transitioning to a single information technology (IT) system to administer its export control system.”

The statement added that “[t]he Administration’s goal is to begin issuing proposed revisions to the control lists and licensing policies later this year.”

This post was originally published on the legacy ABA Section of Administrative Law and Regulatory Practice Notice and Comment blog, which merged with the Yale Journal on Regulation Notice and Comment blog in 2015.

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